<div id="readability-page-1"><div><p>Q2 Holdings (QTWO) just got a fresh catalyst, with its Helix platform teaming up with Sardine to offer real time fraud detection and compliance tools for embedded finance players.</p> <p>See our latest analysis for Q2 Holdings.</p> <p>The stock has been choppy, with a recent 5.17% 1 month share price return but a deeper year to date share price decline of 25.82%. However, the 3 year total shareholder return of 185.65% still hints at strong long term belief in Q2’s digital banking and fraud capabilities.</p> <p>If Helix’s fraud partnership has you thinking beyond just one name, this may be a good moment to explore other high growth tech and AI opportunities through high growth tech and AI stocks.</p> <p>With double digit revenue growth, improving profitability and a price still sitting at a discount to analyst targets, is Q2 an overlooked fintech recovery story, or is the market already baking in the next leg of growth?</p> <h2>Most Popular Narrative Narrative: 17.7% Undervalued</h2> <p>With Q2 Holdings last closing at $73.84 versus a narrative fair value near $89.71, the current setup leans in favor of upside expectations.</p> <blockquote> <p><em>The increasing focus by financial institutions on digital transformation, evidenced by strong engagement and expanded investments in mission-critical digital banking, fraud prevention, and AI solutions, is likely to drive robust subscription revenue growth and improve retention for Q2 over the longer term.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious what kind of growth, margin expansion, and future earnings multiple are being baked into that price target? The underlying projections may surprise you.</p> <p><strong>Result: Fair Value of $89.71 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, sustained bank consolidation and a tougher IT spending backdrop could undercut Q2’s growth, pressuring subscription momentum and testing today’s thesis of undervaluation.</p> <p>Find out about the key risks to this Q2 Holdings narrative.</p> <h2>Another Angle on Valuation</h2> <p>On earnings, QTWO tells a very different story. The stock trades at about 145.5 times earnings, far richer than the US Software average near 32.7 times, its peer average of 36.5 times, and even our fair ratio estimate of 54.5 times. Is this a premium for quality, or a margin of downside risk?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/7cb340fc-3efd-4236-8da6-fed86e0ccf86/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/7cb340fc-3efd-4236-8da6-fed86e0ccf86/chart/pe-multiple-vs-industry"/><figcaption>NYSE:QTWO PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Q2 Holdings Narrative</h2> <p>If you are not fully aligned with this view or simply want to dig into the numbers yourself, you can build a tailored narrative in under three minutes, Do it your way.</p> <p>A great starting point for your Q2 Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Ready for more high conviction ideas?</h2> <p>Do not stop at a single opportunity. Use the Simply Wall Street Screener now to uncover fresh, data backed stock ideas tailored to your investing style.</p> <ul> <li>Capture recovery candidates trading below intrinsic value with these 908 undervalued stocks based on cash flows, which is built from detailed discounted cash flow work across the market.</li> <li>Explore innovation by targeting transformative platforms and enablers through these 26 AI penny stocks, from infrastructure names to application specialists.</li> <li>Seek income and potential capital gains by focusing on dependable payers via these 13 dividend stocks with yields &gt; 3%, all yielding more than 3%.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

QTWO

<p>Q2 Holdings (QTWO) has partnered with Sardine for real-time fraud detection, boosting its Helix platform. Despite a recent 5.17% monthly share price increase, the stock is down 25.82% year-to-date. However, a 3-year total shareholder return of 185.65% indicates strong long-term potential. The stock is considered undervalued with a fair value of $89.71, compared to its current price of $73.84. Challenges include high PE ratio and potential risks from bank consolidation and IT spending cuts. The focus on digital transformation and AI solutions is expected to drive future growth.</p>

Q2 Holdings (QTWO): Evaluating Valuation After Helix–Sardine Embedded Finance Fraud Detection Partnership